Texas' investment in wind power could make it the 'Windy State'

Ray PerrymanMidland Reporter-Telegram

Published 7:00 pm, Sunday, June 15, 2008

While Chicago is known as the "Windy City," on a statewide basis, Texas could probably lay claim to a similar moniker, especially since it is the nation's leading producer of wind powered energy. In 2006, Texas surpassed California as the nation's largest wind-generated power producer and has continued to solidify its lead. Texas now has one-quarter of the nation's entire wind energy capacity. Some of the electricity generated in Texas is sold to nearby states to help meet their energy needs.

Today, the state is home to more than 40 wind-producing projects generating over 5,300 megawatts. That's enough to meet the energy needs of 1.5 million homes. In 2007, for the third consecutive year, Texas was the nation's leader in the growth of wind capacity to the electric grid, adding more than twice the amount of any other state. The nearly ,3 billion worth of generators installed last year, mostly in West Texas, increased the state's overall wind capacity by 57 percent. By the end of this year, the state's wind farms are expected to be producing in excess of 9,000 megawatts.

Not only is the Lone Star State in first place in wind-generated energy, Texas was also the first to make use of offshore wind power production. Additionally, the state is the beneficiary of the U.S. Department of Energy's plans to build a new ,20 million research center to develop the next generation of wind turbine blades. The Corpus Christi facility is one of two being planned; the second will be in Boston.

Other windfalls for Texas include the construction of major megawatt facilities in the Panhandle that were announced in March. Additional wind farms are already on the drawing board. Of special note is the new ,10-,12 billion (including turbines and transmission lines) wind farm being developed by oil investor T. Boone Pickens in Pampa. This facility, the world's largest, will be capable of generating some 4,000 megawatts of electricity. The areas around Sweetwater and Big Spring have also seen major investments.

Producing electricity through the use of wind power is not new, of course. Almost 40 years ago, West Texas State University operated a wind energy research program that led to the creation of the Alternative Energy Institute in 1977. In 2000, wind produced energy still remained more of a curiosity than a legitimate provider of electricity.

However, as a result of a 1999 law that required Texas utilities to offer renewable energy to customers, coupled with substantial advances in wind turbine technology and the growing public desire for clean power resources, the development of wind farms and installations gained speed.

Due in part to the congressional extension of the wind energy production tax credit, numerous manufacturers and developers have projects moving forward. Construction of wind farms in 26 states is now underway. So far this year, approximately 1,700 megawatts of new wind capacity has been added across the nation with another 447 wind producing facilities, at a cost of about ,133 billion, expected to be developed over the next five years.

Although wind energy currently provides only 1 percent of U.S. electricity needs, by 2030, some industry leaders predict that percentage could climb to 20 percent, around the same as that now produced by nuclear reactors.

Advances in technology have reduced the cost for producing electricity through the use of wind to about a nickel per kilowatt-hour and therefore is making wind power more competitive. Various improvements have also enabled electricity to be created at much lower wind speeds. Moreover, technological advances have been seen in smaller turbines, and some individuals are contemplating installing wind turbines in their backyards to help meet personal electricity needs in the face of rising prices.

In addition to providing electricity, wind farms involve numerous benefits in terms of investment and economic opportunities. They contribute significantly to local business activity through the creation of jobs, particularly construction and manufacturing, as well as local spending. They also involve a notable rise in the tax base and generate benefits to local areas through property taxes. Many school districts have realized sizable increases in their budgets thanks to wind farm investments.

Wind energy is inexhaustible and does not produce any emissions. It is also compatible with rural land uses as it does not interfere with crops or grazing. Moreover, it does not consume water as other electricity generation sources do, and is not affected by fossil fuel prices.

Wind power is not without criticism, of course. Among the concerns are the potential dangers of the moving blades to birds, and the fact that subsidies are higher than for nuclear, coal, and natural gas production. Even so, with continued research and anticipated advancements, especially as related to market-driven endeavors, this source of clean or green energy can be expected to be a viable alternative and a definite way of the future.

Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com). He also serves as Institute Distinguished Professor of Economic Theory and Method at the International Institute for Advanced Studies.